Is Brown-Forman Corporation (BF-B) A Good Stock To Buy?

Consequently, key hedge funds were breaking ground themselves. Renaissance Technologies, managed by Jim Simons, initiated the biggest position in Brown-Forman. Renaissance Technologies had $2.3 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $1 million position during the quarter. The following funds were also among the new BF-B investors: Matthew Tewksbury’s Stevens Capital Management, Greg Poole’s Echo Street Capital Management, and Ray Dalio’s Bridgewater Associates.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Brown-Forman but similarly valued. We will take a look at Incyte Corporation (NASDAQ:INCY), Sirius XM Holdings Inc (NASDAQ:SIRI), KKR & Co. L.P. (NYSE:KKR), and Mylan Inc. (NASDAQ:MYL). All of these stocks’ market caps are similar to BF.A’s market cap.

As you can see these stocks had an average of 44.75 hedge funds with bullish positions and the average amount invested in these stocks was $2014 million. That figure was $621 million in BF-B’s case. Mylan Inc. (NASDAQ:MYL) is the most popular stock in this table. On the other hand KKR & Co. L.P. (NYSE:KKR) is the least popular one with only 30 bullish hedge fund positions. Compared to these stocks Brown-Forman Corporation (NYSE:BF-B) is even less popular than KKR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.